Sports stadium and museum plans scrapped

The West Australian Government has formally scrapped plans for a new outdoor stadium and new museum at East Perth.

The Premier Colin Barnett has announced a revised capital works program, in light of the state's deteriorating finances.

He says a new outdoor stadium, including the alternative proposal to redevelop Subiaco Oval will not be considered for at least two years.

Mr Barnett says the East Perth museum plan has been abandoned in favour of a new facility within the Northbridge cultural precinct.

The Government is also abandoning the former Labor Government's plans to redevelop the Perth foreshore at a cost of $300 million.

Mr Barnett says the Government will instead spend about $300 million to boost its public housing stocks, go ahead with a new children's hospital and will extend the northern suburbs rail line to Butler.

He says the stadium is now off the agenda.

"We are not going to spend time on the debate about a new stadium or a rebuild or whatever," he said.

"It is simply unaffordable in this environment so we are redirecting money into the projects that matter most."

The Government has also announced a virtual hiring freeze on public servants but insists there will be no forced redundancies.

The Treasurer Troy Buswell says the total public service will be capped at 99,000 workers.

He is also predicting a deficit budget in the financial year of 20-10, 20-11, which is one year earlier than forecast late last year.

The Opposition Leader Eric Ripper says he fears the former Government's plans for a new outdoor stadium have been permanently shelved.

"It might be reasonable to defer the stadium project for a period of time but I interpret the Government's announcement as being the end virtually of any prospect of a stadium development in Western Australia," he said.

The head of the WA Football Commission Neale Fong says the Government's decision is disappointing.

He says it is understandable, given the financial climate.

"Everybody understands that Subiaco Oval needs to be improved, we were working hard with the previous Government on the brand new stadium but given the circumstances there still is options for the rebuilding of Subiaco Oval," he said.